How Much to Start a Dutch Bros Franchise?

Dutch Bros. is a privately held American coffee company founded in 1992 in Grants Pass, Oregon, by brothers Dane and Travis Boersma. It is the largest drive-through coffee chain in the United States, with over 315 locations in nine states. The company is known for its long lines of cars at its drive-thrus and its commitment to sustainable practices.

Initially, after much research and deliberation, the brothers decided they would need to start with a minimum of $1.5 million to open their first store. After opening their first store in 1992, they quickly realized that they had greatly underestimated the costs and in order to continue expanding they needed to bring on outside investors. In order to open just one Dutch Bros. location it costs between $357,600 and $1,607,000. The company has a very detailed development guide that goes into great depth about what is required to open a franchise.

To open a Dutch Bros. you must have at least $600,000 in liquid assets and a net worth of $1.5 million. The company does provide some financing options for those that qualify, which can cover up to 50% of the total investment. The total investment to open and operate a Dutch Bros. location for the first three years is between $357,600 and $1,607,000.

$357,600 - 1,607,000 is a wide range, so what factors influence the total investment amount? The biggest factor is whether you are purchasing an existing Dutch Bros. location or building a new one. If you are purchasing an existing location, the development costs will be on the lower end of the range because you will not need to build out a new space. The costs to build out a new space can range from $600,000 to $1 million, depending on the size and location of the space.

In addition to the purchase or construction costs, you will also need to factor in the cost of equipment, which ranges from $135,000 to $325,000. The cost of inventory is also something you will need to factor in and is estimated to be $15,000 for the initial three-month supply. Finally, you will need to factor in the cost of working capital, which is estimated to be $50,000.

The total investment to open and operate a Dutch Bros. location for the first three years is between $357

A Dutch Bros franchise has an ongoing royalty fee of 6% of gross sales. This royalty fee is paid to the franchisor, Dutch Bros Co. Ltd., on a quarterly basis. The fee is used to help Dutch Bros Co. Ltd. with the cost of marketing, advertising, and other operational expenses associated with running the franchise. The royalty fee is also used to help pay for the continued support that Dutch Bros Co. Ltd. provides to its franchisees, including training and assistance with store operations.

According to Dutch Bros, the average annual profit for a franchise is $250,000. This profit is made after all operating costs, including the cost of goods sold, are deducted from gross sales. Dutch Bros does not release specific information on franchising fees, but according to industry experts, the initial investment for a Dutch Bros franchise ranges from $215,000 to $1.3 million.

Before opening a Dutch Bros franchise, it is important to know the company’s core values. These values are quality, service, and relationships. Dutch Bros is a company that is focused on providing high-quality coffee and excellent customer service. The company has built its reputation on providing a great product and superior service, and these are the values that need to be retained in each franchise location.

It is also important to understand the company’s business model. Dutch Bros is a drive-thru only coffee company, so franchisees need to be prepared to invest in a good location with high visibility and easy access. The company has a very efficient system for processing orders and serving customers, so franchisees need to be able to maintain this high level of efficiency in their own location.

Finally, it is important to know the target market for Dutch Bros coffee. The company’s primary target market is young adults, so franchisees need to be prepared to market their location to this demographic. Dutch Bros coffee is a premium product, so franchisees need to be prepared to price their coffee accordingly.

Overall, Dutch Bros is a great company to franchise with. The company has strong values, a proven business model, and a well-defined target market. Franchisees who are familiar with these things will be well-positioned for success.